If French fund selectors welcomed both labels, they pointed out some issues about SRI funds that would not enter into the label’s scope.

Edmond Schaff, head of Fund Selection at SRI boutique Cedrus Asset Management, told InvestmentEurope “it might be possible that some asset managers are fully in line with the principles promoted by these labels but have chosen not to be candidates for the label for marketing or costs reasons – as could be the case for foreign asset managers.”

“We also consider that issues brought by energy transition remain global and companies operating solutions to address them can be located outside the EU,” he said.